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2013.01.14Hemlock Semiconductor announces layoffs, reduces production as a result of industry oversupply, international trade disputes

Hemlock, Mich. – Hemlock Semiconductor Group announced today it
will lay off approximately 400 employees in Michigan and Tennessee in the
coming weeks in response to significant oversupply in the polysilicon industry
and the threat of potential tariffs on its products sold into China.

These actions will affect approximately 300 employees at Hemlock
Semiconductor's Tennessee site and 100 at its Michigan site, as the company
evaluates the longer-term impact of these conditions on its business. Should
market conditions persist, these layoffs could become permanent.

"This is a difficult but necessary decision to enable Hemlock
Semiconductor to navigate the volatility in the polysilicon and solar
industries," said Andrew Tometich, president of Hemlock Semiconductor.
"The unresolved trade disputes among the U.S., China and Europe are a major
factor in Hemlock Semiconductor's actions as the threat of tariffs on U.S.
polysilicon imported into China has significantly decreased orders from China,
which is home to one of the largest markets for our products."

As a result of these decisions, Hemlock Semiconductor's Michigan site will
continue to reduce production to align with current customer demand. The
Tennessee facility, which is nearly completed with its construction phase, will
maintain a minimum workforce focused on safely maintaining the site for
eventual production. A number of factors will impact the exact timing of the
start-up of the facility, including customer demand and resolution of the trade
disputes.

"Hemlock Semiconductor has been in business for 52 years and remains a
leading player in its industry. As one of the industry leaders we will manage
through this period of extreme volatility and uncertainty and will emerge as a
group of companies that will remain viable for the long-term," said
Tometich.

About Hemlock Semiconductor GroupHemlock Semiconductor Group (hscpoly.com) consists of
several joint venture companies owned by Dow Corning Corporation,
Shin-Etsu Handotai and Mitsubishi Materials Corporation. Hemlock Semiconductor
is a leading provider of polycrystalline silicon and other silicon-based
products used in the manufacturing of semiconductor devices and solar cells and
modules. Hemlock Semiconductor began its operations in 1961.

About Dow CorningDow Corning (dowcorning.com) provides
performance-enhancing solutions to serve the diverse needs of more than 25,000
customers worldwide. A global leader in silicones, silicon-based technology and
innovation, Dow Corning offers more than 7,000 products and services via
the company's Dow Corning® and XIAMETER® brands.
Dow Corning is equally owned by The Dow Chemical Company and Corning,
Incorporated. More than half of Dow Corning's annual sales are outside the
United States. Dow Corning's global operations adhere to the
American Chemistry Council's Responsible Care® initiative, a stringent set
of standards designed to advance the safe and secure management of chemical
products and processes.